Treasury Secretary Bessent: Market Corrections Are Healthy, Signaling No Immediate Policy Intervention

Treasury Secretary Bessent: Market Corrections Are Healthy, Signaling No Immediate Policy Intervention

U.S. Treasury Secretary Scott Bessent downplayed concerns over recent asset market declines, emphasizing that corrections are a natural and beneficial part of the economic cycle. His remarks suggest that the much-anticipated policy support—or what some refer to as the “Trump put”—may not materialize as swiftly as investors hope.

“I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy; they are normal,” Bessent stated on NBC’s Meet The Press on Sunday, according to Bloomberg. “I‘m not worried about the markets. Over the long term, if we implement sound tax policies, deregulation, and energy security measures, the markets will perform well.”

Bessent’s stance challenges the widespread belief that the Trump administration would act quickly to counter any market turbulence, particularly those linked to its policy measures, such as trade tariffs. President Donald Trump recently reinforced this perspective, stating that he is not fixated on stock market movements.

Last week, both the Nasdaq and the S&P 500 entered correction territory, shedding more than 10% from their February highs amid concerns that tariffs could dampen economic growth while fueling persistent inflation.

Bitcoin Follows Risk-Off Trend

The turbulence has not been limited to traditional markets. Bitcoin (BTC) has also suffered a steep decline, falling nearly 25% from its record peak above $109,000 in January, according to CoinDesk Indices data. The downturn reflects broader risk aversion across financial markets and disappointment over the absence of new BTC acquisitions under Trump’s strategic digital asset reserve plan.

The latest sell-off has intensified speculation about potential government or Federal Reserve intervention, particularly within the crypto community, which had anticipated stronger policy support.

However, Bessent’s comments suggest that any such action may take longer to materialize or require a more significant market downturn before being considered. Last month, the Treasury secretary reiterated that the administration’s primary focus is on reducing yields on the 10-year Treasury note, a key benchmark influencing long-term borrowing costs.

Fed Holds Steady, Awaiting Policy Impact

Meanwhile, Federal Reserve Chair Jerome Powell and his colleagues have signaled a cautious approach, opting to assess the broader impact of Trump’s economic policies before making any decisive moves. Earlier this month, Fed officials reiterated that they are in no rush to cut interest rates, prioritizing a data-driven approach.

Investors will be closely watching this week’s Federal Reserve meeting, with the policy decision set for release on Wednesday.